KORE Q2 2025 presentation: revenue growth rebounds as losses narrow significantly

Introduction & Market Context

KORE Group Holdings Inc. (NYSE:KORE) presented its second quarter 2025 earnings results on August 14, 2025, showcasing a significant improvement in financial performance compared to the previous quarter. The IoT solutions provider reported a 5% revenue increase and substantial reduction in net losses, signaling a potential turnaround after a challenging first quarter.

KORE’s stock closed at $2.38 on the day of the presentation, up 2.1%, reflecting positive investor sentiment. The company’s shares have experienced significant volatility in 2025, with the stock trading well below its 52-week high of $4.88 but comfortably above its 52-week low of $1.10.

Quarterly Performance Highlights

KORE reported Q2 2025 revenue of $71.3 million, a 5% increase from $67.9 million in the same period last year. This represents a notable improvement from Q1 2025, when the company experienced a 5% year-over-year revenue decline.

Most impressively, KORE significantly narrowed its net loss to $16.9 million, a 79.8% improvement from the $83.6 million loss recorded in Q2 2024. Adjusted EBITDA grew by 46.3% to $16.7 million, with the adjusted EBITDA margin expanding to 23.4% from 16.8% in the prior year period.

As shown in the following chart of key financial metrics:

Cash flow metrics also showed improvement, with cash from operations increasing slightly to $4.1 million and free cash flow turning positive at $1.6 million compared to negative $0.1 million in Q2 2024. This marks the third consecutive quarter of positive cash flow for the company.

The following chart illustrates KORE’s cash flow improvements:

Segment Performance Analysis

KORE’s business is divided into two main segments: IoT Connectivity and IoT Solutions. The IoT Connectivity segment, which represents 79% of total revenue, showed modest growth of 1% year-over-year to $56.1 million. More significantly, the company reached a milestone of 20.1 million total connections, an 8% increase from the prior year.

The IoT Solutions segment demonstrated robust growth, with revenue increasing by 25% to $15.2 million, now representing 21% of total revenue compared to 18% in Q2 2024. This segment also showed margin improvement, with gross margin increasing to 34.1% from 30.9% in the prior year.

The detailed breakdown of segment performance is illustrated in the following table:

KORE’s pipeline of future business opportunities continues to grow, with estimated annual recurring revenue (eARR) total pipeline increasing to $84.6 million. The company also reported $10.2 million in closed won eARR for the quarter, a significant improvement from $6.1 million in the previous quarter.

The following chart shows the growth in KORE’s eARR pipeline and closed won business:

Strategic Initiatives

During the quarter, KORE made progress on several strategic initiatives across five key areas: Customer Intimacy, Product Innovation, Profitable Growth, Operational Excellence, and Winning Team.

In the Customer Intimacy category, KORE introduced new tools including KOREY™, a virtual assistant, and KORE One®, a unified customer interaction platform. The company also reported enhancements to user experience and the upcoming launch of a new KORE Console interface.

Product innovation efforts included the introduction of a new SuperSIM® Pooled Plan and dual-profile capability, as well as global profile deployments with Brazil and China carriers. The Connected Health division is leveraging SGP.32 readiness to enhance its offerings.

The company highlighted several key wins during Q2 2025 across diverse sectors, including AI & BI Service Provider, Telematics Hardware Provider, Global Virtual Fence, and Remote Patient Monitoring, demonstrating the breadth of KORE’s IoT solutions portfolio.

Forward Guidance

Despite the improved Q2 performance, KORE maintained its previous guidance for fiscal year 2025, projecting:

• Revenue of $288-298 million (2% year-over-year growth)
• Adjusted EBITDA of $62-67 million (19% year-over-year growth)
• Free Cash Flow of $10-14 million

The following slide shows KORE’s maintained guidance for 2025:

The decision to maintain guidance rather than raise it despite the strong Q2 results suggests management is taking a cautious approach, potentially due to macroeconomic uncertainties or anticipated challenges in the second half of the year.

Financial Analysis

KORE’s financial performance shows significant improvement in profitability metrics. Operating expenses decreased by 61.4% to $44.6 million, contributing to the substantial reduction in operating loss from $76.7 million to $5.2 million, a 93.2% improvement.

The company’s segment profitability metrics reveal interesting trends. While IoT Connectivity’s gross margin decreased slightly to 35.4% from 38.9%, its Non-GAAP margin remained relatively stable at 60.0% compared to 60.9% in the prior year. Conversely, IoT Solutions showed improved profitability with gross margin increasing to 34.1% from 30.9% and Non-GAAP margin rising to 45.3% from 38.5%.

The detailed breakdown of gross margin and Non-GAAP margin by segment is shown below:

Overall, KORE’s Q2 2025 results demonstrate a company in transition, with improving financial metrics and a focus on profitable growth. The significant reduction in net loss and improved cash flow position suggest the company is making progress toward sustainable profitability, though challenges remain as it works to accelerate revenue growth in its core IoT Connectivity segment.

Full presentation:

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